Laboratory simulation studies and a composting pilot study were conducted to evaluate the capacity of three strains of fungi, indigenous fungus Fusarium sp. and Phanerochaete chrysosporium and Coriolus Versicolor, to remediate petroleum- contaminated soils. In laboratory, the fungi were inoculated into a liquid culture medium and the petroleum-contaminated soil samples for incubation of 40 and 50 days 5 respectively. In the 200-day pilot study, nutrient contents and moisture were adjusted and maintained under aerobic condition in composting units using concrete container (118.5 cm × 65.5 cm × 12.5 cm) designed specially for this study. The laboratory simulation results showed that all the three fungi were effective in degrading petroleum in the liquid culture medium and in the soil. At the end of both the laboratory incubations, the degradation rates by Phanerochaete chrysosporium were the highest, reaching 66% after incubation in liquid culture for 50 days. This was further demonstrated